(1) Field of the Invention
The present invention is concerned generally with the field of bargaining and specifically with enhancing the ability of parties to (a) arrive at valuations of property (whether real property or personal property, and whether tangible property or intangible property), and (b) facilitate the transfer of interests in property on terms that are fair and acceptable to the involved parties. It has particular application and utility in situations where a party or group of parties that own an interest in property in common with another party or group of parties wishes to terminate the joint-ownership relationship through a purchase or sale of the ownership interest held by one party (or group of parties) to the other party (or group of parties). It also has specific application and utility in situations where two parties (or groups of parties) that own or hold interests in separate properties are each willing to either buy out the other's interests, or sell their own interests to the other party, under certain terms and conditions (such as when each party recognizes that single ownership would result in a higher valuation).
The invention involves the use of an escrow system and also involves the use of certain processes that are employed in so-called buy-sell mechanisms, under which one party unilaterally “names a price for her share of the [property] and another party decides whether to pay that price (i.e., buy out the first party) or to be paid that price (i.e., sell out to the first party).” Brooks, R., and Spier, K. E., “Trigger Happy or Gun Shy? Dissolving Common-Value Partnerships with Texas Shootouts,” Kellogg School of Management, Preprint (2004), at p. 2. Under such arrangements, the first party sets a price and contractually binds herself to abide by the other party's election either to purchase or sell at that price.
Thus, the operational and functional aspects of the invention will be most readily appreciated and understood by parties who are experienced in the use and provision of escrow services and in providing assistance to parties who are seeking to extricate themselves from joint-ownership relationships, such as attorneys. The principles that underlie the invention will be most readily appreciated and understood by game theorists, economists, and strategic analysts.
(2) Background Art